Soybean Meal Futures—Soybean meal futures in the July contract is trading higher by 270 points at 297.00 as heavy rains have entered the Midwestern part of the United States once again sending the entire grain market higher this Monday afternoon in Chicago.
I have been recommending 2 bearish trades with an average price around 299 & if you took those trades continue to place the stop loss on a hard basis only at 305.50 as an exit strategy as the volatility is extremely high and will become even more violent as we enter the summer months.
Traders are awaiting this afternoon’s crop progress report as that certainly is going to dictate short-term price action in tomorrow’s trade as I will remain short as I still think more acres will be planted in soybeans as corn acres certainly look to be diminished. Anecdotally speaking I deal with a lot of farmers and they are very concerned about their corn crop especially in the state of Iowa as there are some real concerns and if this wet weather continues look for higher corn prices and lower soybean prices.
Soybean meal is still trading under their 20 and 100 day moving average as the trend is to the downside, however for the bearish momentum to continue we have to break Fridays low of 293 in my opinion.
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